JB Oxford Holdings Inc. has had a history of scandal and now its trade processing unit has agreed to pay $2.1 million over allegations of abusive mutual fund trading.

The firms' subsidiary, National Clearing Corp., allegedly facilitated late trading in mutual fund shares and deceptive market timing, and will be paying a fine of $1 million. National Clearing Corp. will also be responsible for reimbursing clients up to $1.1 million for improper fees.

JB Oxford has been forbidden, for a period of five years, from having a controlling interest and operating a firm that is engaged in the broker/dealer clearing business.

Three former executives of National Clearing Corp. have also settled with the SEC. James G. Lewis, former CEO, agreed to pay $200,000 and is banned from the brokerage industry for five years. Kraig L. Kibble, former director of compliance, will pay $50,000 and has been banned for four years. James Y. Lin, former vice president of correspondent services agreed to a $35,000 fine and a three-year ban, according to the Los Angeles Times

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